Eastman Kodak (or simply “Kodak”), the American photography company with a 133-year-old history, has warned in its latest earnings report that its future may be in jeopardy due to looming debt obligations. According to CNN, the company said it lacks “committed financing or available liquidity” to meet roughly US$500 million (~RM 2.11 billion) in upcoming payments, saying there is “substantial doubt” over its ability to continue operations.
To raise cash, Kodak plans to halt contributions to its retirement pension plan. The company also noted that tariffs are unlikely to significantly affect its operations, as many of its cameras, inks, film and other products are manufactured in the United States.
Kodak CEO Jim Continenza said in the earnings release that the firm “continued to make progress against our long-term plan despite the challenges of an uncertain business environment.” A spokesperson told CNN the company remains confident it can pay down a substantial portion of its debt ahead of schedule, while exploring amendments, extensions or refinancing for the remainder.
Founded in the late 19th century, Kodak revolutionised photography with its 1888 camera and the slogan “You push the button, we do the rest.” It dominated the U.S. film and camera market for decades, and even introduced the first digital camera in 1975.
However, it struggled to adapt to the digital era and eventually filed for bankruptcy in 2012. More recently, the company has sought to diversify into pharmaceutical ingredients while continuing to supply films, chemicals and licensed products. Kodak also tried to ride the cryptocurrency wave in 2018 with its own KodakCoin, but the project failed to take off and was ultimately shelved.
(Source: CNN)
